Every Porsche Sold Puts Average of $23,000 in VW Group Coffers

Jens Meiners

Mar 14, 2014

You want that crest painted? It’ll cost you extra.

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There were times when the relationship between Volkswagen and Porsche could have been better. Yes, their histories were intertwined from the beginning when Ferdinand Porsche constructed the original Volkswagen. But the cooperation turned sour a decade ago when Porsche accumulated VW stock in a bid to gain control of the Wolfsburg brand. As we know today, it went the other way, and now Porsche is one of the crown jewels in the Volkswagen empire. And a profitable one at that.

According to Bloomberg Businessweek, Volkswagen averages a whopping $23,200 profit on every Porsche sold. That’s more than every other VW Group brand, including Bentley. Lamborghini’s profits aren’t broken out separately, but rather lumped in with Audi’s.

The secret behind Porsche’s incredible financial success is a combination of an attractive portfolio and bold pricing. Porsche vehicles routinely command higher prices than their competitors, and the Stuttgart-based automaker charges massively for derivatives and more-powerful versions.

For the sake of illustration, a Cayenne Turbo costs more than twice as much as a standard Cayenne, at $111,395 versus $50,595. And upgrading to a Cayenne Turbo S sets buyers back a further $35,000. Porsche’s list of options is legendary, too. The brand doesn’t shy away from charging premium amounts for extras as seemingly insignificant as painted Porsche crests on wheel center caps, painted air-vent slats, or an exterior-matched key fob.

It’s no wonder Volkswagen couldn’t be happier with its sports-car brand in the southwest of the country. After the launch of the Macan and the 918 Spyder, we expect to see further great—and assuredly pricey—things coming out of Stuttgart-Zuffenhausen.